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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 
FORM 10-Q
 
 
(Mark One)
 
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended June 30, 2002
 
OR
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission File Number        1-13884      
 
 
Cooper Cameron Corporation

(Exact Name of Registrant in its Charter)
 
 
Delaware

 
76-0451843

(State or Other Jurisdiction of
 
(I.R.S. Employer
Incorporation or Organization)
 
Identification No.)
 
 
1333 West Loop South, Suite 1700, Houston, Texas

 
77027

(Address of Principal Executive Offices)
 
(Zip Code)
 
 
713/513-3300

(Registrant’s Telephone Number, Including Area Code)
 
 
N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
Yes    X              No        
 
 
Number of shares outstanding of issuer’s common stock as of July 30, 2002 was 54,203,346.


 
PART I—FINANCIAL INFORMATION
 
Item 1. Financial Statements
 
COOPER CAMERON CORPORATION
CONSOLIDATED RESULTS OF OPERATIONS
(dollars in millions, except per share data)
 
    
Three Months
Ended
June 30,

    
Six Months
Ended
June 30,

 
    
2002

    
2001

    
2002

    
2001

 
    
(unaudited)
    
(unaudited)
 
REVENUES
  
$
402.6
 
  
$
404.6
 
  
$
769.5
 
  
$
739.5
 
    


  


  


  


COST AND EXPENSES
                                   
Cost of sales (exclusive of depreciation and amortization)
  
 
286.7
 
  
 
284.2
 
  
 
546.6
 
  
 
515.2
 
Depreciation and amortization
  
 
19.9
 
  
 
19.2
 
  
 
38.2
 
  
 
37.6
 
Selling and administrative expenses
  
 
63.9
 
  
 
57.4
 
  
 
124.8
 
  
 
110.9
 
Interest, net
  
 
0.2
 
  
 
2.1
 
  
 
0.5
 
  
 
6.2
 
Nonrecurring/unusual charges
  
 
—  
 
  
 
13.0
 
  
 
—  
 
  
 
20.2
 
    


  


  


  


Total costs and expenses
  
 
370.7
 
  
 
375.9
 
  
 
710.1
 
  
 
690.1
 
    


  


  


  


Income before income taxes
  
 
31.9
 
  
 
28.7
 
  
 
59.4
 
  
 
49.4
 
Income tax provision
  
 
(9.2
)
  
 
(8.9
)
  
 
(17.2
)
  
 
(15.3
)
    


  


  


  


Net income
  
$
22.7
 
  
$
19.8
 
  
$
42.2
 
  
$
34.1
 
    


  


  


  


Earnings per share:
                                   
Basic
  
$
0.42
 
  
$
0.36
 
  
$
0.78
 
  
$
0.63
 
    


  


  


  


Diluted
  
$
0.40
 
  
$
0.35
 
  
$
0.75
 
  
$
0.61
 
    


  


  


  


Shares used in computing earnings per common share:
                                   
Basic
  
 
54.2
 
  
 
54.3
 
  
 
54.1
 
  
 
54.2
 
    


  


  


  


Diluted
  
 
60.0
 
  
 
58.0
 
  
 
59.8
 
  
 
56.8
 
    


  


  


  


 
The accompanying notes are an integral part of these statements.

2


COOPER CAMERON CORPORATION
 
CONSOLIDATED BALANCE SHEETS
(dollars in millions, except shares and per share data)
 
    
June 30, 2002

    
December 31, 2001

 
    
(unaudited)
        
ASSETS
             
Cash and cash equivalents
  
$
224.6
 
  
$
111.6
 
Short-term investments
  
 
50.2
 
  
 
102.1
 
Receivables, net
  
 
293.0
 
  
 
306.2
 
Inventories, net
  
 
403.5
 
  
 
423.8
 
Other
  
 
20.1
 
  
 
21.3
 
    


  


Total current assets
  
 
991.4
 
  
 
965.0
 
                   
Plant and equipment, net
  
 
454.7
 
  
 
460.1
 
Goodwill, net
  
 
269.2
 
  
 
259.8
 
Other assets
  
 
210.1
 
  
 
190.2
 
    


  


TOTAL ASSETS
  
$
1,925.4
 
  
$
1,875.1
 
    


  


LIABILITIES AND STOCKHOLDERS’ EQUITY
             
Short-term debt
  
$
7.3
 
  
$
10.5
 
Accounts payable and accrued liabilities
  
 
328.2
 
  
 
349.2
 
Accrued income taxes
  
 
18.9
 
  
 
18.1
 
    


  


Total current liabilities
  
 
354.4
 
  
 
377.8
 
                   
Long-term debt
  
 
460.1
 
  
 
459.1
 
Postretirement benefits other than pensions
  
 
46.5
 
  
 
47.8
 
Deferred income taxes
  
 
42.2
 
  
 
41.7
 
Other long-term liabilities
  
 
25.7
 
  
 
25.4
 
    


  


Total liabilities
  
 
928.9
 
  
 
951.8
 
    


  


Stockholders’ Equity:
                 
                   
Common stock, par value $.01 per share, 150,000,000 shares authorized, 54,566,054 shares issued at June 30, 2002 and December 31, 2001
  
 
0.5
 
  
 
0.5
 
Capital in excess of par value
  
 
950.2
 
  
 
951.4
 
Retained earnings
  
 
89.9
 
  
 
47.7
 
Accumulated other elements of comprehensive income
  
 
(29.6
)
  
 
(53.0
)
Less: Treasury stock at cost, 369,668 shares at June 30, 2002 (571,320 shares at December 31, 2001)
  
 
(14.5
)
  
 
(23.3
)
    


  


Total stockholders’ equity
  
 
996.5
 
  
 
923.3
 
    


  


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  
$
1,925.4
 
  
$
1,875.1
 
    


  


 
The accompanying notes are an integral part of these statements.
 
 

3


COOPER CAMERON CORPORATION
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
 
    
Three Months
Ended
June 30,

    
Six Months
Ended
June 30,

 
    
2002

    
2001

    
2002

    
2001

 
    
(unaudited)
    
(Unaudited)
 
Cash flows from operating activities:
                           
Net income
  
 $22.7
 
  
$19.8
 
  
$42.2
 
  
$34.1
 
Adjustments to reconcile net income to net cash provided by (used for)
operating activities:
                           
Depreciation
  
17.4
 
  
14.8
 
  
33.4
 
  
29.1
 
Amortization
  
2.5
 
  
4.4
 
  
4.8
 
  
8.5
 
Deferred income taxes and other
  
0.2
 
  
4.8
 
  
2.0
 
  
8.3
 
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
                           
Receivables
  
18.2
 
  
(56.4
)
  
17.8
 
  
(55.2
)
Inventories
  
28.2
 
  
(2.8
)
  
28.0
 
  
(52.3
)
Accounts payable and accrued liabilities
  
(6.0
)
  
13.6
 
  
(27.8
)
  
12.2
 
Other assets and liabilities, net
  
(5.9
)
  
(6.6
)
  
(7.4
)
  
(22.3
)
    

  

  

  

Net cash provided by (used for) operating activities
  
77.3
 
  
(8.4
)
  
93.0
 
  
(37.6
)
    

  

  

  

Cash flows from investing activities:
                           
Capital expenditures
  
(21.9
)
  
(20.9
)
  
(40.7
)
  
(35.5
)
Acquisitions
  
—  
 
  
(25.5
)
  
(5.5
)
  
(30.1
)
Sales of short-term investments, net
  
69.2
 
  
—  
 
  
55.6
 
  
1.2
 
Other
  
1.9
 
  
0.4
 
  
3.4
 
  
2.1
 
    

  

  

  

Net cash provided by (used for) investing activities
  
49.2
 
  
(46.0
)
  
12.8
 
  
(62.3
)
    

  

  

  

Cash flows from financing activities:
                           
Loan borrowings (repayments), net
  
0.1
 
  
(220.2
)
  
(4.8
)
  
(178.7
)
Issuance of debentures
  
—  
 
  
450.0
 
  
—  
 
  
450.0
 
Debenture issuance costs
  
—  
 
  
(7.9
)
  
—  
 
  
(7.9
)
Activity under stock option plans and other
  
2.6